Development Min.: We exhausted our resources as concerns electricity

“The government has made a huge decision, for a giant intervention in electricity, the largest that has taken place in all of Europe. We can not take new measures every week. As concerns electricity, we have exhausted all our margins,” said the Minister of Development and Investment, Adonis Georgiadis, speaking onFirst Program 91.6 and 105.8 FM.

The minister noted the problem with fuel prices as yesterday oil closed at $ 121, the highest oil price in the history of our country. As he said the reopening of China led to greater demand while the 90% embargo imposed on Russian oil by the EU meant less supply.

Fuel taxes

Mr. Georgiadis clarified that by removing taxes from fuel, we are in 12th-13th place in the price of gasoline in Europe, but adding taxes we are in 4th place, acknowledging that the tax rate on fuel has always been high.

In relation to whether a reduction of the excise tax on fuel would increase consumption and therefore state revenues, Mr. Georgiadis agreed that there is such a theory that merits consideration, but also expressed the strong contradiction that lies in the fact that because inflation is general and not only in fuel, incomes are under pressure and so consumption will inevitably fall, so it is not certain that it will bring corresponding consumption. Fuel is also a big problem for the country, he added, because all hydrocarbons we buy and consume are written in the trade deficit as they are imported, so not only is the increase in consumption positive, it is also a negative.

The minister pledged that the government will do more if it has fiscal maneuvering room, cautioning against reckless spending, as had been the case with past governments.

The minister found it reasonable that citizens want state aid, at a time when there is this great difficulty, but added that the government staff will judge if their room to do more, something which polls are not qualified to answer.

Greece during the two years of the pandemic had a significantly larger deficit than the European average, added Mr. Georgiadis, since it gave out greater aid than other countries, adding that this deficitous spending, above the European average, cannot go on for the third year in a row.

Checks on the liquid fuel supply chain continue

Regarding the fight against speculation, Mr. Georgiadis noted that the fuel chain has never before been so extensively controlled by any other minister, noting that refineries, transport services, and service stations have been inspected and inspections are continuing.  If there is a finding that says they have violated the profit margin the government has established, they will be fined.

As concerns opposition criticism that the government avoids confronting the cartels, Mr. Georgiadis stressed “I am proud because in my day, the biggest fines for scandal that the Ministry of Commerce has ever imposed in the last 50 years have been imposed. I challenge Mr. Tsipras and any other SYRIZA MP to show me a corresponding fine or an inspection, even if it took place in a company during the Tsipras government.”

Greek-Turkish relations

“Some provocations will be encountered, but my personal assessment is that they will be smaller than those of 2020,” said the minister on Greek-Turkish relations and the tension that the neighboring country seeks. Mr. Georgiadis noted that Greece is much stronger, having inducted new Rafale fighters. “I do not believe that Erdogan will dare do something extremely extreme, he will curse us, he will shout,” said Mr. Georgiadis.